Pressure mounts for Pi Network: Will it surpass the 50-day moving average?
Pi Network's recent recovery in the crypto market hasn't been smooth sailing, with the token dipping about 10% over the past week. Currently trading at $0.5832, it's a far cry from its all-time high of $2.99, representing an 80% plummet.
However, a closer look at the trading volume paints a different picture. Pi Network's pi-2.38% volume surged by nearly 35% over the last day, reaching over $128 million. This surge in trading activity could be a sign that traders are once again showing interest in the token, hinting at a potential bigger move.
The technical picture is still murky. Pi Network is still hovering below its 50-day simple moving average of $0.82, with other short-term moving averages like the 10-day and 20-day also indicating a bearish trend. The relative strength index stands at 38.7, suggesting the token is leaning towards oversold, but not quite there.
Indicators like the moving average convergence/divergence suggest that buyers might be slowly starting to step in. Bollinger Bands show Pi is near the lower band, hinting at lower volatility and potential overselling. A bounce from here could push the price back towards the middle band at $0.75, or even higher.
If Pi Network manages to break above the 50-day SMA with strong volume, it could aim for $0.85-$0.90. A rally past $1.00 would significantly flip sentiment, especially if driven by major news. On the flip side, if selling persists and prices stay under key moving averages, Pi could retest support at $0.55 or even slide down to $0.45, flirting with its historical low.
One of the biggest risks for Pi Network is token dilution. In April, 21.4 million new tokens were unlocked, worth about $12.3 million. An estimated 131 million tokens are expected to be unlocked every month for the next 12 months. If demand doesn't increase or the team doesn't take action, this gradual increase in supply could have a significant impact on the price.
A potential solution could be a token burn. The Pi Foundation currently holds over 70 billion PI tokens, valued at over $40 billion. Burning some of these tokens could help ease investor fears and support the price. Additionally, combining token burns with fee-burning mechanisms could further stabilize the price.
Another potential catalyst is a listing on a major exchange like Coinbase or Binance. There is growing community sentiment for a future listing, which could unlock new demand and liquidity. However, a concrete listing timeline remains unknown. Pi Network's ability to turn the 50-day MA into support could be the first indicator that strength is truly returning.
Without a clear understanding of the token's circulating supply due to the closed mainnet phase, future price movements heavily depend on supply dynamics post-mainnet launch. Predictions suggest potential volatility, with 2025 price projections ranging from $0.60 to $2.10, but these remain contingent on controlled token release schedules. Each of these factors could play a significant role in Pi Network's future trajectory.
- Amid Pi Network's recent recovery in the crypto market, the token's trading volume surged by nearly 35% over the last day, reaching over $128 million.
- The relative strength index for Pi Network stands at 38.7, suggesting the token is leaning towards oversold, but not quite there.
- Indicators like the moving average convergence/divergence suggest that buyers might be slowly starting to step in.
- Pi Network is currently trading at $0.5832, a far cry from its all-time high of $2.99, representing an 80% plummet.
- One of the biggest risks for Pi Network is token dilution, with an estimated 131 million tokens expected to be unlocked every month for the next 12 months.
- A potential solution could be a token burn, as the Pi Foundation currently holds over 70 billion PI tokens, valued at over $40 billion.
- A concrete listing timeline remains unknown for Pi Network, but a potential catalyst is a listing on a major exchange like Coinbase or Binance, which could unlock new demand and liquidity.
